CSDR Refit - SDR: Parliament formalises its first proposals


On 17 March, the European Commission (EC) has published its proposal for a revision of the CSDR Regulation*, which dealt in particular with the buy-in obligation. The EC draft has since been in the hands of the Council and Parliament: Each institution has to decide on the content and on the amendments to be made.

If the EC has decided to move towards a conditional implementation of the mandatory buy-in (the date of which is now 2 November 20251, the European Parliament (EP) is going further in its draft report published on 11 October. Following in the footsteps of the ECB, which took a position on the CSDR review (CSDR Refit) in July 20222, Parliament also calls for this measure to be abandoned outright. The buy-in would become a measure applied only by the CCPsand would again be included in the regulation on short selling4.

The EP working document also contains a first reference to a potential reduction in the settlement cycle. ESMA would be mandated to assess annually the benefits and challenges of a transition to T+1, following the current movement in the United States (planned for 2024).

Discussions within the institutions continue and the final version of Parliament is not expected until February 2023. This final version will be discussed with the one adopted by the Council and that of the EC during the Trilogue phase in order to have the version to be published in the Official Journal of the Union. We will then know the fate of the mandatory buy-in in a CSDR Refit version.

*CSDR: Central Securities Depository Regulation
1 Read our Flash News: CSDR - SDR: The mandatory buy-in is postponed to November 2025
Read our Flash News: CSDR Refit: The ECB gives its opinion on the revision proposal
3 CCP : Central Counterparty
4 Article 15 of the regulation 236/2012